Mexico Pacific has entered into a long-term LNG sales and purchase agreement (SPA) with South Korean energy company Posco International.
Under the SPA, POSCO International will purchase 700,000tpa of LNG over a 20-year period, with the supply being sourced from Mexico Pacific’s Saguaro Energía facility in Puerto Libertad, Sonora, Mexico.
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The Saguaro Energía LNG facility, owned by Mexico Pacific, has a projected output of 15 million tonnes per annum (mtpa) and is supported by the 800km Sierra Madre Pipeline.
Both Mexico Pacific and POSCO International are exploring further opportunities to strengthen their commercial ties.
The first phase of the Saguaro Energía LNG facility, when operational, will feature three liquefaction trains and the necessary infrastructure to facilitate LNG production.
The facility aims to capitalise on the abundant natural gas from the Permian Basin in Texas, which is expected to yield the lowest landed price for LNG deliveries into Asia.
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By GlobalDataMexico Pacific chief marketing officer Sungbok Park said: “We are delighted to welcome POSCO International as a foundation customer, further validating the strategic value of west coast North American LNG for Korea, one of the world’s largest LNG importing markets.
“We look forward to a lasting fruitful partnership with POSCO International and to delivering world-class infrastructure that strengthens global energy security, reduces emissions and improves the lives of millions of people around the world.”
With three liquefaction trains already under commercial contracts, and the backing of government entities and capital markets, Mexico Pacific said it is well-positioned for a positive final investment decision.
The company has secured key permits at federal, state and municipal levels for both the LNG facility and the Sierra Madre Pipeline.
Earlier this year, ExxonMobil LNG Asia-Pacific signed a long-term SPA with Mexico Pacific, agreeing to a supply of 1.2mtpa of LNG from Train 3 of the Saguaro Energia project.
Additionally, Mexico Pacific has a similar agreement with Woodside, an Australian oil and gas company.
